Western Union finds 60% of Saudi consumers prefer digital money transfers 

Special Western Union finds 60% of Saudi consumers prefer digital money transfers 
Jean Claude Farah, president of the Middle East and Asia Pacific, Western Union. (Supplied)
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Updated 30 December 2022
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Western Union finds 60% of Saudi consumers prefer digital money transfers 

Western Union finds 60% of Saudi consumers prefer digital money transfers 

RIYADH: Given that Saudi Arabia’s consumers are largely and naturally tech-savvy, it is hardly surprising that almost 60 percent of consumers who send money abroad prefer digital money-transfer services, compared to 22 percent who want choice and 17 percent who send cash through retail channels only, according to research commissioned by Western Union. 

However, many still want the power to choose between online and retail experiences — depending on their convenience and needs. Exclusive insights show that today almost 60 percent of consumers who send money abroad prefer digital money-transfer services, compared to 22 percent who want choice and 17 percent who send cash through retail channels only. 

The study surveyed over 1,500 money-transferring people in Saudi Arabia and asked how, when and why they move money internationally. 

“Saudi Arabia consumers recognize the convenience moving money securely through digital channels brings,” Jean Claude Farah, president of the Middle East and Asia Pacific, Western Union, told Arab News in an exclusive interview. 

“COVID-19 pandemic also played a major role in accelerating adoption of digital payments, as lockdowns and movement restrictions encouraged consumers to switch to cashless alternatives.” 

However, he added, none of this compares to the efforts of the government and the regulator, who have been making significant strides toward digital transformation in the country. 

“Since launching their ambitious National Transformation Program, the country’s visionary leaders have been steadfast in developing the necessary infrastructure to support this evolution,” said Farah. 

“As a result, today Saudi Arabia ranks seventh for its digital competitiveness among the G20, while internet penetration across the country sits at an impressive 98 percent.” 

The study outcomes demonstrate that citizens and residents have been part of this journey — largely opting for online options over in-person experiences, as they benefit from the country’s increasingly advanced digital framework. 

Farah said the Kingdom’s increasingly advanced digital framework, coupled with the consumers’ eagerness to adapt, has bolstered Saudi Arabia’s position as one of the leaders of the digital economy. 

Spurring digital growth 

The research also aligns with Western Union data, demonstrating strong customer preferences to move money digitally. In the first three quarters of 2022, the company experienced double-digit year-on-year growth in the volume of digital transactions from Saudi Arabia. 

When asked what factors contributed to this phenomenal growth, Farah said: “Consumers remain highly motivated to support families and loved ones and are typically resilient in their efforts to do so. Over the last few years, movement restrictions shifted consumer behavior from retail to digital, spurring digital growth. The remittance industry was no exception.” 

He added: “Our digital growth is strong, and we will continue to prioritize how best we can serve our customers so that we continue to grow. This means continuing to invest in digital customer acquisition and focusing on ensuring customers who wish to move from retail to digital are able to do so seamlessly.” 

Influence of receivers 

The research also shows that receivers of funds strongly influence how much and often their senders transfer money. Overall, 34 percent of senders say their families or loved ones’ financial situation drives decisions on the frequency and flow of funds. 

Sixty-eight percent also say their receiver influences the company they choose to send money through, and 74 percent state that their transfer method of choice  — digital, retail or a mix — depends on how their receiver can collect the money. 

Moreover, 74 percent of those surveyed expected to send money through wire transfer in the next 12 months, while 66 percent hoped to receive it. 

However, senders also struggle with a cost-of-living dichotomy: 73 percent said they need to send more money as the cost of living in their receiving country has increased. Yet 67 percent believe that a higher cost of living in their country of residence means they cannot transfer as much as they previously did. 

“There are many factors that influence remittances, such as differential unemployment rates, inflation rates and cost of living,” explained Farah. “This is because to remit is a personal decision: unique to individual circumstance, and often done with the intention to support family based in home countries around the world.” 

“Given the broader global economic climate, and the need to keep pace with daily financial needs, we expect remittances to continue to grow in the near future,” he continued. 

Women prioritize differently 

The study also shows that more women in Saudi Arabia send money transfers more often than once a month than men. Nearly a quarter of the women surveyed — versus 21 percent of men — say they move money multiple times within a month. 

Also, 55 percent of the surveyed group believed men move money primarily to pay for family support, and 42 percent felt that women transferred sums for financial commitments, future savings and academic endeavors. 

“Globally, women comprise slightly less than half of today’s expatriate workers,” Farah said. 

He added: “They are more empowered than ever before as they move internationally and shape global economies. In line with Vision 2030, Saudi Arabia is focused on attracting the finest local and international minds to bolster economic development. 

“Their ambition to increase women’s participation in the workforce to 30 percent by 2030 means that ensuring greater access to financial services is imperative, particularly with the rise of new technologies.” 

Committed to the Kingdom 

Asked what steps the company is taking to offer stronger financial opportunities to help consumers better manage their financial lives, Farah said Western Union, which has been operating in Saudi Arabia for over 20 years, is deeply committed to the Kingdom. 

“Today, Western Union offers its own branded digital money transfer services, as well as digital services with agents in the country, he said. 

“Additionally, we offer our services through over 200 retail agent locations,” he continued. “Through our retail and digital channels, customers can send money into billions of bank accounts, as well as millions of wallets and cards across more than 130 countries and territories. 

“Real-time transfers are available in 100 of these countries. Cash-payout across our global network is also available in over 200 countries and territories.” 

He said the company comes across a recurring theme: consumers want choice in how they send money — based on convenience and need. So, while scaling its digital solutions is the company’s priority, they also want to ensure no one is left behind. 

This means tailoring solutions for the digitally disinclined segments of the population, such as those accustomed to walking to the nearest location to send money in cash to their family back home. 

“Our customers trust us with their financial resources; we earn this trust by delivering upon our commitment to move their money reliably, safely and at speed,” he concluded. 

“We believe that ensuring customers have a choice in how and when they move money globally will play a significant role in helping them manage their daily financial needs.” 


Saudi Arabia, Sierra Leone ink aviation regulatory agreement at ICAN 2023 

Saudi Arabia, Sierra Leone ink aviation regulatory agreement at ICAN 2023 
Updated 04 December 2023
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Saudi Arabia, Sierra Leone ink aviation regulatory agreement at ICAN 2023 

Saudi Arabia, Sierra Leone ink aviation regulatory agreement at ICAN 2023 

RIYADH: Air transport services linking Saudi Arabia and Sierra Leone are set to strengthen following the signing of a deal aimed at establishing regulatory frameworks between the two nations. 

The agreement was inked by the Saudi Minister of Transport and Logistics Services Saleh Al-Jasser, and Alhaji Fanday Turay, Sierra Leone’s minister of Transport and Aviation, on the sidelines of the 15th International Conference on Air Services Negotiations in Riyadh.  

This move aligns with the principles of the Chicago Convention on international civil aviation, the Saudi Press Agency reported.  

The bilateral agreement between the two nations complements the International Civil Aviation Agreement, known as the Chicago Convention, signed in 1944. The treaty regulates international civil aviation, ensuring fair and equal opportunities for all parties involved. 


COP28: UN climate event mobilizes over $57bn in first four days

COP28: UN climate event mobilizes over $57bn in first four days
Updated 04 December 2023
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COP28: UN climate event mobilizes over $57bn in first four days

COP28: UN climate event mobilizes over $57bn in first four days

DUBAI: The UN’s climate action summit has mobilized over $57 billion from various sectors in just four days of the event, with financial pledges and commitments covering finance, health, food, nature and energy.

On climate finance, the UAE announced on opening day a $30 billion catalytic fund, ALTÉRRA, with an emphasis on unlocking private finance across the Global South.

The COP28 host-country also partnered with the Bill & Melinda Gates Foundation to contribute $200 million for ‘Food Systems, Agriculture Innovation and Climate Action,’ focused on agricultural research, scaling agricultural innovations and funding technical assistance.

It also announced a $150 million pledge for water security.

The World Bank meanwhile announced an increase of $9 billion annually to finance climate-related projects.

In a historic move, the Climate Loss and Damage fund was finally operationalized with about $750 million pledged in the first 48 hours of COP28 to help vulnerable nations cope with the impacts of climate change.

In addition, $3.5 billion has been announced to replenish the Green Climate Fund; $2.7 billion was pledged for health; $2.6 billion for food systems transformation; $2.6 billion to protect nature; $467 million for urban climate action and $1.2 billion has been committed for relief, recovery and peace.

On energy, $2.5 billion was mobilized for renewables and $1.2 billion for methane emission reduction. In addition, $568 million was pledged to drive investments in clean energy manufacturing.

Meanwhile, eight new declarations have been announced that will help transform every major system of the global economy including food systems, health and renewable energy.


Saudi Arabia’s real estate supply reservations more than double

Saudi Arabia’s real estate supply reservations more than double
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Saudi Arabia’s real estate supply reservations more than double

Saudi Arabia’s real estate supply reservations more than double

RIYADH: Citizens in Saudi Arabia are gaining greater access to residential units as the real estate supply reservations surged 110 percent year on year in November to reach 12,503, according to new figures.     

The Kingdom’s National Housing Co. announced that residential units were sold at competitive prices starting from SR250,000 ($66,649) compared to the previous year’s rates, in which the lowest contract amounted to SR321,000 per residential unit, the Saudi Press Agency reported. 

This falls in line with the Gulf country’s plans and strategies to launch several extensive residential projects in order to achieve a balance between population growth and rapid urban expansion.    

This also comes as the rise in population density has led to increased demand for housing, meaning the Kingdom is working to boost the real estate supply to meet this need, aligning with a sustainable urban approach. 

This rapid increase in reservations is mainly attributed to launch of a number of residential projects in various regions, the most prominent of which is the inauguration of the Al-Fursan Suburb in Riyadh which aims to provide the largest real estate supply with a high level of quality and luxury. 

Other projects include the Sadayem Suburb which was launched in Jeddah along with many housing schemes in distinctive locations within the main cities. 

In fact, the number of residential projects reached 46 during 2023, thereby cementing Saudi Arabia’s innovative model for real estate development. 

National Housing Co. is the leader and enabler of the real estate development sector and the largest major developer of suburbs and residential communities in the Kingdom characterized by quality of life. 

The company pumps more than 300,000 housing units into eight suburbs and six residential communities on an area of ​​​​more than 120 million sq. meters, accommodating more than 1 million citizens. 

It seeks to find solutions to secure supply chains with high quality and more sustainable construction materials, as part of the company’s keenness to increase the real estate supply with residential options according to international standards. 

All the firm’s efforts are directed to achieving the goals of the housing program by raising the percentage of residential ownership for Saudi families to 70 percent by 2030. 


Riyadh Air partners with Turkish Airlines to offer wide range of benefits for travelers 

Riyadh Air partners with Turkish Airlines to offer wide range of benefits for travelers 
Updated 04 December 2023
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Riyadh Air partners with Turkish Airlines to offer wide range of benefits for travelers 

Riyadh Air partners with Turkish Airlines to offer wide range of benefits for travelers 

RIYADH: Saudi Arabia’s nascent flag carrier Riyadh Air has signed a strategic memorandum of understanding with Turkish Airlines to offer a wide range benefits for travelers using the carriers.

Under the deal, passengers of both airlines can enjoy the convenience of a comprehensive interline and codeshare agreement, allowing for smooth connections across the networks of both Turkish Airlines and Riyadh Air, according to a press statement.  

Another feature of this cooperation agreement is the offering of a loyalty program, which allows passengers to earn points or credits on codeshare flights operated by either airline. 

The press statement added that these benefits will be offered to travelers after Riyadh Air launches operations in mid-2025 and is subject to regulatory approvals by relevant authorities.  

The signing ceremony took place on the sidelines of the 15th International Conference on Air Services Negotiations, which is affiliated with the International Civil Aviation Organization, being held in Riyadh.  

“This agreement is another very significant step in the evolution of Riyadh Air as we partner with the world’s largest global airline by destinations served,” said Riyadh Air CEO Tony Douglas. 

He added: “Bilateral agreements with established network airlines are extremely important to Riyadh Air and there are significant benefits to this partnership, our passengers can enjoy greater connectivity to the world and deeper access to Turkiye, while an increased flow in volumes of tourism, religious and business travel into the Kingdom of Saudi Arabia is anticipated.”  

Strengthening the aviation sector is very crucial for Saudi Arabia, as the Kingdom is aiming to become a global tourism hub, aligned with the goals outlined in Vision 2030.  

Through its National Tourism Strategy, Saudi Arabia aims to attract 150 million tourists to the Kingdom by 2030.  

“This memorandum of understanding is more than a collaboration; it’s a bridge between Turkiye and Saudi Arabia, further strengthening our ties,” said Levent Konukcu, chief investment and technology officer at Turkish Airlines.  

He added: “It’s also an opportunity to expand our reach and offer our guests more choices and convenience. We believe this partnership will not only benefit our customers but also contribute significantly to the tourism and business sectors of both countries.”  


CEOs discuss key issues at Saudi Insurance Authority’s 1st meeting

CEOs discuss key issues at Saudi Insurance Authority’s 1st meeting
Updated 04 December 2023
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CEOs discuss key issues at Saudi Insurance Authority’s 1st meeting

CEOs discuss key issues at Saudi Insurance Authority’s 1st meeting

RIYADH: Saudi Arabia’s insurance sector is set to see significant cooperation between companies and shareholders after the Kingdom’s Insurance Authority held its first CEO meeting. 

The meeting came within the framework to strengthen relations between insurance companies and industry leaders to advance the sector.  

During the gathering on Dec. 3, Abdulaziz Al-Boug, chairman of the authority’s board, emphasized the IA’s keenness to work with insurance companies as partners in a bid to further develop the sector, according to a report by the Saudi Press Agency.  

He also added that the authority is focused on regulating the sector, stimulating growth and innovation, enhancing competitiveness, and increasing the sector’s efficiency and contribution to the economy.  

Al-Boug highlighted the insurance sector’s significant role in protecting the national economy, properties, and upholding the rights of policyholders including individuals, companies, and government entities.

Effective risk management and creating an attractive investment environment are also key focus areas.  

Naji Al-Tamimi, the IA’s CEO, stressed the importance of united efforts and transparency between the authority and active companies in the sector.   

The authority’s objectives include regulating and supervising the insurance sector in Saudi Arabia, raising public awareness, ensuring the protection of all contractual parties and beneficiaries, and contributing to the sector’s financial stability and development.  

The meeting marks the beginning of a new phase for the Saudi insurance industry, with plans to review and develop all insurance-related systems and regulations.   

This approach is expected to create a competitive and flexible market, ensuring sector stability, increased investments, and a diversity of insurance products that reflect positively on end-users and align with global standards.  

In August, the Saudi Cabinet, chaired by Crown Prince Mohammed bin Salman, approved the establishment of the IA.  

“The Cabinet’s decision to establish the Saudi Insurance Authority underlines the Kingdom’s commitment to building and developing a world class insurance sector — one set apart by established best practices and international standards,” Adel Al-Eisa, media spokesperson for insurance companies in Saudi Arabia told Arab News in September.   

He added: “The launch of the authority marks the latest step taken by the Kingdom to regulate, supervise, control, support and enhance the Saudi insurance sector, and enhancing its effectiveness.”